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Ask the Manufacturing Execution Systems (MES) Expert: Scheduling Assistance
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SCM vs. ERP

Asked on Apr 8 2005 1:46:49:000PM

Q

Like most companies, our organization needs to gain better control over its costs, and we are focusing on inventory management and carrying costs. Internally, we are debating whether to work with our ERP vendor to address this, or whether to call in supply chain technology providers. Which type of vendor would work best?

Tom, Grand Rapids, MI
AThe answer of course depends on what process areas you hope to improve, and whether and how those processes can be automated or expedited through the use of application technology. Either way, you will need to use the same approach to evaluate the different vendors, which depending on the problem, could also include EAI vendors, trading networks or even software tools providers.

Assuming your company already has an ERP system in place, then it is only logical to hear out how they would address your objective. That's the nature of your investment. Realistically, your ERP vendor is probably very good at some things, but can not cost-effectively provide answer for many others. And in that case, do they acknowledge their shortcomings and point to SCM vendors who they've certified or partnered with to provide the functionality they lack? Or do they inform you of the anticipated release date for the next module which they believe will address your particular issue? If they fail to address your company's specific business challenge, you have your answer as far as the ERP vendor is concerned.

However, chances are that other vendors will not have the silver bullet, either. This is the major challenge of using technology in value chain activities, today: Some products can do or overdo some functions exquisitely, but few or none will address your company's specific business functions without a great deal of customization. Good luck.

Meet the expert

Simon Ellis

Research Program Director

In his 15-year career, Ellis has developed specialized knowledge of low-cost sourcing, RFID, data synchronization, lean, Six Sigma, and other supply chain disciplines and technologies.
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